Landlord insurance for rental properties
- Landlord insurance may be a good idea if you own a rental property
- Depending on the type of building you have, most insurers – including QBE – give you three options: building cover, building and contents cover, or contents only cover. Each of these QBE Landlord Insurance options give you the choice to include a Rental Default by Tenant option for an additional premium, to cover rental income lost if the tenant fails to pay their rent.
- It’s a good idea to speak to a financial advisor as there could be tax implications
Owning and renting out a property comes with its fair share of risks. If you have an investment property you’re looking to rent out, you might be looking at landlord insurance. But what does it cover you for? Take a few minutes to read our guide.
What does landlord insurance cover?
Most landlord insurance policies cover risks faced by landlords when renting out their property. It’s designed to cover costs for damage to the landlord’s insured buildings and/or contents caused by events like:
- Fire
- Flood
- Storm
- Theft
- Vandalism and more
Most insurers – including QBE – give you three options: building cover, building and contents cover, or contents only cover. All QBE Landlord Insurance policies include a Rental Default by Tenant option, to protect you if the tenant fails to pay their rent.1
What factors affect landlord insurance prices?
Your premiums may be affected by the following:
- Your level of cover – whether you choose buildings only, contents only or buildings and contents together
- The location of your property
- Your selected Basic Excess – the higher the Basic Excess you choose, the lower your premium
- If you choose to add the Rental Default by Tenant option to your policy, an additional premium applies.
- Your sum insured
Consider your excess
Usually, the excess represents the amount you’ve agreed to contribute towards a claim, with the insurer covering the rest.
If you choose a higher excess, it may help to bring down the cost of your insurance premiums, because it means the customer is contributing more towards the cost of the claim if they need to make one.
Consider tax deductions
As a rental property owner you may be eligible for tax deductions. The Australian Taxation Office (ATO) website offers some helpful information.
Is it compulsory to have landlord insurance?
Most mortgage lenders will require you to have landlord insurance coverage for your rental property as a condition of your investment loan.
Learn about QBE Landlord Insurance and get a quote
1 To decide if this product is right for you, please read the QBE Landlord Insurance Product Disclosure Statement (PDS) and Target Market Determination (TMD).